ExxonMobil stated on Saturday that it plans to hand over all operations and assets from two production-sharing contracts in Malaysia to the government energy firm Petronas.
“This is not a sale and there will be no changes to EMEPMI’s working interest in the Production Sharing Contracts,” ExxonMobil Exploration and Production Malaysia Inc., or EMEPMI, said in a statement to Reuters.
“This does not impact our other businesses in Malaysia — we remain committed to conducting business here as we have for more than 130 years,” it added.
In a different statement early on Saturday, Petronas said that EMEPMI is in talks about transferring operations for two production-sharing contracts situated offshore in Peninsular Malaysia.
“The discussions are subject to further agreements between both parties,” it said in response to a Reuters query.
“Petronas Carigali remains committed to safe operations, as well as maintaining reliable and uninterrupted energy supply for our customers throughout the process.”
ExxonMobil reportedly began attempting to sell its aging upstream assets in Malaysian media in 2020.
According to Malaysian media, the US major has been attempting to sell its aging upstream assets since 2020 as part of a strategy change to concentrate on oil production in the Americas.
According to three sources, Exxon’s assets, including the nation’s premier Tapis oilfield in Terengganu, which started production in 1978, have been taken over by Petronas.
One of the sources stated that as part of the agreement, Exxon’s employees will work for Petronas.
The agreement’s conditions took time to clear.
Exxon stated in a November 12, 2023, article on its website that it was still a significant energy producer in Malaysia, accounting for roughly 40% and 50% of natural gas and crude oil production, respectively, in Peninsular Malaysia.
In addition to having a working interest in ten more platforms in five South China Sea fields, the company operates 35 oil and gas platforms in 12 fields offshore Terengganu.
Approximately 15% of Malaysia’s daily production of 600,000 barrels of crude oil and condensate and more than half of the daily output of more than 2 billion cubic feet of natural gas in Peninsular Malaysia are produced by the combined activities.
A US$2.5 billion enhanced oil recovery project at the Tapis field, which began operations in late 2014, was its most recent significant investment in the nation.
